Mortgage Question

[joelatti]

On vacation here and also doing some buisness......I am just about to buy a house and would like anyone with mortage knowledge to chime in.......First I am putting about 40% down.....My credit score is 800+......My choices so far are from 1)wells fargo 30 fixed jumbo loan at 6.25 2) ING direct at 6.00 7/1 ARM 3) The money store 6.125 30 fixed jumbo loan


Both 30 fixed have about the same closing costs...probably around 17K....I am worried about using the "money store" but they tell me there "paper" is bought by countrywide......If I go with ING closing costs would be about 13-14K, and a better rate BUT only locked for 7 years.....I will only be living in this house for a max of 7 years, BUT you never do know....What would you do???

 

[whalewager]

trains40 is the man to answer this ?

 

[mr21]

17K seems high for closing costs - how many points are you buying?

 

[DennizdaMenace]

17 K is too high!..Deal with Money Store only if you want your mortgage sold every other year..Stay Away..Deal with reputable established bank..Get quotes from...

INDIMAC

Chase

Wells Fargo and Bank of America..Then chose the best offer of those 4..Been there done that..GL

 

[DennizdaMenace]

Dont forget Wells Fargo was around during the stage coach era

 

[Timetopay]

17k with 800 credit and 40% down. LOL

You getting screwed man unless the house is 2 million.

 

[joelatti]

Just to clarify...IN NY there is a 2% mortage tax...house is aprox 875K...So I will be mortaging about 400K.that's about 10Kin mortage tax..Then you have title insur. for me AND the bank thats another 4K...Lawyers.....inspection...etc.....so about 17K...but with ING its about 13K......

ALSO considering 5/1 arm at 5.50 and I can relock that ARM at any time for just $500 dollars.....

ANYONE have advice??

 

[LEYKIS101]

Joe,

I guess your correct answer would depend on exactly how sure you're going to be moving in 7 years. I'd guess you'd have to run the monthly payments of your options out and see what your monthly savings would be, multiply by the 84 months and figure in the savings of the ING reduced closing costs. If you're pretty sure you'll be out of there in 7 yrs., I think the ING mortgage would likely be your best option.

 

[aceduecetrey]

you should consider a new loan program just being introduced to the states by a company call CMG, but it is backed by GMAC. It is hugely popular in Australia and becoming so here also. I have a link to the videos and calculator at my office and I will post them here tomorrow, but in short it lets you pay off your house in less then ten years, without changing your spending habits at all.

 

[joelatti]

Thank you, but I don't think you can get a mrtage with CMG if you are in NY

 

[aceduecetrey]

Wow, you are right. Sorry about that, NY is only one of a handful of states not yet available.

 

[Drunkn247]

Whoever was talking about money store selling your mortgage every year is just nonsense. What does it matter to you who holds the note after you sign it. You will just be making the check out to another bank, your terms of the loan will not change. Go with the fixed Joe..there is no point to get into an arm right now especially if the rate isn't significantly lower.

 

[joelatti]

Well as an update I did go with the 7/1 ARM and the rate was significantly better....5.5% compared to the now 6.75 national avg for the 30 year fixed...I haven't closed yet BUT ING gave me a free 90 day lock(UNHEARD of!) So as long as I close by August 13th I should have a good deal on my hands.......If I would have went with a 30 year fixed at the time it was 6.125, BUT I would have had to pay to relock the rate AT LEAST once maybe twice at $2500 a pop.....So I think I made the correct decision....any feedback is greatly appreciated, we will see in 7 years....Hell I'll probably have moved by that time anyway

 

[D2bets]

I refi'd around the low in '03 at 5.5% fixed 30-year and as a result I'll probably never be able to move because I don't want to lose my rate. Not sure if it's a good thing or bad thing. :think2:

 

[Drunkn247]

Good luck with everything but to inform you that if your ratelock was up and you had to extend it you would not be charged for it. The bank that your doing the loan through would be charged a .25% to relock the loan. Anyway good luck.

 

[joelatti]

Good luck with everything but to inform you that if your ratelock was up and you had to extend it you would not be charged for it. The bank that your doing the loan through would be charged a .25% to relock the loan. Anyway good luck.

Maybe I was getting bad info, BUT Countrywide, Wells Fargo, Money store all stated that I would have to pay to re-lock the loan.....Doesn't make sense that the Bank would pick up the .25% and not pass it on to me...Why would they pay???

 

[Timetopay]

They will eat the .25 right now as their business is in the shit with the refi and purchase market slow.

 

[joelatti]

They will eat the .25 right now as their business is in the shit with the refi and purchase market slow.

Well the point is moot as I didn't lock in, BUT I will ask AND IMO all banks in this market have the cunsumer who has the rate locked in " by the balls" they would say you don't want to pay the .25% then walk and you know what the best rate I could get at that point would be????

The one I just walked away from??? Who does that spite??

 

[NorthernStar]

You did good taking the lower rate and costs on the arm. Once they have your money in interest they never give it back The rates/costs on longer locks with arms is minimal so there really wasn't a ton of value in the "free 90 days". It is common to have a fee for a fixed rate floatdown. The rate on the floatdown is usually based on a 60 or 90 price even though you may be relocking 15 prior to closing, so in a short period it is hard to get a better rate, plus they dont have to give you the better rate. Often times there is an up front fee to get a floatdown option on a fixed that is non refundable

 

[auggiedawg]

you should consider a new loan program just being introduced to the states by a company call CMG, but it is backed by GMAC. It is hugely popular in Australia and becoming so here also. I have a link to the videos and calculator at my office and I will post them here tomorrow, but in short it lets you pay off your house in less then ten years, without changing your spending habits at all.

very interested. Would like more info on this. Link?